Basic Bank Accounts
Basic bank accounts usually includes a debit card to withdraw money, the capability of ordering checks, and the option of direct deposit, but may include some limitations compared with other types of accounts. The amount of checks used each month may be limited if there is no service fee. Basic bank accounts that include fees are usually minimal but the fees can vary depending upon the institution and the conditions of the account. They do not normally accrue interest on the balance and do not include overdraft protection. There may even be some choices for students that include no service charge and free personalized checks for the first order. Some banks offer perks to members for having their payroll check direct deposited. An individual might want to consider opening an account with an institution that offers online banking. Participating in online banking allows the member to access their account 24 hours a day, 7 days a week.
Second chance bank accounts allow individuals who have no credit history or bad credit history to open up an account. Institutions that offer basic bank accounts may also offer second chance banking. There is a company that keeps track of any money owed to financial institutions by individuals or businesses. This system is often checked by banks that do not offer second chance checking. A person with credit issues may want to do some research and call the institutions that they are considering to find out if credit issues are a problem or if owing another bank will keep one from becoming a member. A person who owes a financial institution money should find out how to reconcile this as quickly as possible so it will not be a problem in the future and because it is the right thing to do.
A debit card allows an individual to make purchases as a credit or as a debit. Making purchases using a debit card requires a pin number to be entered at the time the purchase is made. Many banks offer debit cards to individuals for a small fee and some are free. Some even offer debit cards with basic bank accounts. Debit cards can be used to make purchases online. This is a big plus for those who want to do their shopping online for the holidays. Debit cards can also be purchased at some retailers. The individual uses cash to load them and can use them until the balance of the cash is gone. Retailers usually charge a fee each month if a set minimum balance is not maintained. A person with a debit card from a retailer can usually access their information online so he or she can check the balance and see all of the transactions that have been made. Some things can not be purchased with money. "But Peter said unto him, Thy money perish with thee, because thou hast thought that the gift of God may be purchased with money" (Acts 8:20).
Identification to open an account includes a social security number or tax identification number, a driver's license, employment information, physical address, and a phone number. Basic bank accounts can not be successfully opened without the proper identification. Other kinds of identification that may be acceptable include utility bills with name and address on them, tax documents, and a major credit card. It would be best to call the institution first and find out what is needed before applying for an account. When making a deposit personal identification is not required but any time an account holder withdraws money or gets cash when making a deposit personal identification is required.
Financial institutions that have a website will usually post all the different types and choices of accounts offered on their website. This will usually include service charges and interest information. Basic bank accounts may be set up to opened online or at the banks physical location. Some financial institutions offer online checking and savings. In addition, a bank may allow the member to pay and receive bills online. Bill pay is usually free with most financial institutions but some do not offer the service with a basic account. Sometimes financial institutions offer free checking with direct deposit. There is a form that has to be filled out through one's employer before direct deposit of one's paycheck can be started.
Online banking allows the member to view balances and transaction history over the Internet. Basic bank accounts may provide the option of being able to manage the account online. This may include transferring balances between checking and savings as well as being able to print transaction history. Correspondence between the financial institution and the member can be handled through email on the institutions website. A person would do well to consider using an online bank that is a member of the FDIC and has security encryption to protect member's personal information from predators.
Withdrawing cash with a debit card is free when the account holder does so at the institution's location. However, going to a different institution and withdrawing money from an ATM will usually mean paying a fee for each transaction. Basic bank accounts may include a small monthly fee for the use of a debit card but many offer their members a free debit card. There are usually limits on how much money can be withdrawn on a daily basis. If a person needs to withdraw more they can always go directly to the bank to do so. ATM's are open all of the time unless they are out of order or run out of money. Making a withdrawal from an ATM requires a pin number. Basic accounts may be a really good choice for the person who does not need the extra perks of banking and the cost that usually go with those extra perks.
Bank Accounts For KidsBank accounts for kids help to teach concepts about how to spend wisely and how to save money. Some institutions offer special accounts for kids that are supervised by the caregiver. Programs are set up to provide the child with basic financial concepts. They teach mathematical concepts including counting, adding, and subtracting. Allowing children to spend their own money on what they want makes them realize that once the money is gone there is no more to spend and to get more they have to earn it. Bank accounts for kids can be used to teach children how to save. Options include a low minimum balance to open the account, interest that accrues yearly, and low or no monthly fees. Youngsters can benefit in so many ways if parents will become determined to teach them about saving, investing, and how to keep a check on spending.
Children that receive money from relatives for the holidays and birthdays might want to consider taking advantage of bank accounts for kids. A caregiver should encourage children to put a percentage of any money they receive in a savings account. Just think, saving a little each month can grow to be a sizeable amount by the time the child reaches college age. Most kids want a car by the time they reach driving age. The money saved could help to pay for fuel expenses, and even a car payment each month. The concept of always putting a percentage into savings will become a habit after awhile that will help to instill the importance of saving within the child. "And the child grew, and waxed strong in spirit, filled with wisdom: and the grace of God was upon him" (Luke 2:40).
Parents often give their children a piggybank to help to teach them about saving money when very young. The piggybank concept can be expanded as a child gets a little older. Bank accounts for kids can be a smart consideration once a child starts receiving an allowance because money in the pocket can mean money in the bank. When a tyke starts learning about spending the concept of saving should also be taught so that it can make an impression at a young age. Of course, parents should be setting an example for their children by handling their own finances well. If a parent teaches a tyke that saving is important but he or she does not save or handle their own financial matters well then the lesson does not have as much leverage or influence and it actually sends a conflicting message to the youngster.
An investment account is another option when considering bank accounts for kids. Investment choices provide an additional way to grow money and teach the teen that purchasing stock or mutual funds in other companies can be a great way to save. Investments can be made in the companies that make the products that the youngster likes to buy. Some financial institutions offer the combination of a savings and a brokerage account. Ones for kids often offer no service fees until the teen turns 18 when he or she can decide to keep the account or close it. A caregiver might want to do so comparison shopping online so he or she can find other options that are worth considering when it comes to investments.
Educational sites on the Internet as well as financial sites can help a caregiver to choose the best way to invest money for children. Bank accounts for kids may offer what some sources call kid-friendly mutual funds. The funds are usually available from popular companies that youngsters easily recognize. The choices include some educational information that can help a caregiver to teach youngsters about investing. Information may also include tips on how tykes can track a company's financial health and help a parent make the decision on whom to invest in. The youngster may not understand some of the ins and outs of investing until he or she gets much older but just the act of participating in it will provide some knowledge that will be valuable later on.
Children will have opportunities to learn about different companies and the difference between private and public ones when a parent considers making investments on behalf on the youngster. The topic may come up when a child will want to invest in a company that they love and will learn that purchasing stocks are only possible with public companies. Bank accounts for kids provide opportunities for tykes to grow up learning about the very things that they will need to know once adulthood comes. Since schools are not largely teaching children about opportunities for saving and investing a parent should be all the more determined to do so and many financial institutions are willing to help by offering options that are ideal for youngsters.
Financial matters are real life issues that youngsters really need to learn about at an early age. Preparing youngsters for the real world is only going to make them more aware and probably make them more responsible with handling money. Preparing them in childhood will also prepare them for adulthood. Bank accounts for kids is something that every parent should seriously consider because bad financial decisions and being irresponsible with money can haunt a young adult for many years. Bad financial decisions can lead to bankruptcy and low credit scores later on. Starting out with money in the bank and with the important goal of saving can do wonders for a young person who is trying to make it on his or her own.